On 11 April 2014, the European Commission (EC) released a presentation reporting that the European Parliament has proposed amendments to the EC’s initial proposals on interchange fees. Those proposals include an interchange fee cap of 7 cents per debit card transaction above 35 EUR. Other amendments include proposals for the caps for both cross-border and national transactions to apply within one year of the Regulation coming into force, to include commercial cards of four-party schemes within the scope of interchange caps, and to exclude three-party card schemes whose transaction volumes are below a threshold to be set by the EC.
What this means for you
Firms will need to keep abreast of developments as the legislative process continues and be prepared to deal with the changes within the transitional period.